In the three decades before the 2008 financial crisis, individual national economies became increasingly global: banks, companies and consumers overseas had a direct impact on the economy here in the United States.
But in recent years, the amount of money flowing across borders has drastically decreased. According to a new report, this represents a drastic shift away from international commerce, with localized markets more dependent on domestic consumption for growth. It could mark the end of modern globalization.
Category Archives: Trade
Is This the End of Globalization?
Posted by Matt
on March 1, 2013
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As Our Economy is Outsourced to China the Obama Administration Once Again Does Nothing | The Economic Populist
Posted by Matt
on October 14, 2012
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Once again the U.S. Treasury and President Obama have refused to label China a currency manipulator, this time by delaying their report on exchange rates until after the election. The excuses abound, with the claim the Treasury Department must assess progress via a G-20 meeting, scheduled conveniently in November, to oh gee, the administration doesn’t want to start a trade war. Anyone bothering to view the statistics on trade knows the United States has been in a trade war with China for over 12 years and guess what, we lost.
Obama complaint against China raises threat of trade war – Telegraph
Posted by Matt
on September 18, 2012
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The administration alleges Beijing provided $1bn (£610m) of subsidies between
2009 and 2011 by increasing tariffs on US exports of car-parts, according to
a complaint filed at the World Trade Organisation (WTO).Within hours China had hit back, using its own complaint to the WTO to
challenge plans in Washington to increase tariffs on subsidised imports from
China.“We are continuing to make it clear to our trading partners that we will fight
to support each jobs here at home,” Ron Kirk, America’s top trade official.
said on Monday .Obama complaint against China raises threat of trade war – Telegraph
Nobody wins in a two-sided trade war. However, somebody does win in a one-sided trade war like the current system.
Is it ever a good idea to trade with hostile nations who have nuclear weapons pointed at you? What about nations who steal your nuclear weapons designs?
In the early 1990s Deng Xiaoping introduced the 24 Characters strategy: keep cool-headed to observe, be composed to make reactions, stand firmly, hide our capabilities and bide our time, never try to take the lead, and be able to accomplish something.
Why does China need to hide its capabilities? And what is it bidding its time for?
The answer is of course that once China gets strong enough there will be payback for historical grievances from the West and Japan. Does that sound like a good trading partner?
China pushes Japan with sea claims, trade threats | Reuters
Posted by Matt
on September 17, 2012
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China has moved to bolster its legal position in a volatile territorial dispute with Japan, state newspapers said on Monday, warning that Japan could endure another “lost decade” of economic stagnation if Beijing turns to trade retaliation.
The volley of warnings from Chinese officials and newspapers came after a weekend of protests across dozens of cities, some of them violent. Japanese Prime Minister Yoshihiko Noda urged Beijing to ensure Japan’s people and property were protected.
…
“But in struggles concerning territorial sovereignty, if Japan continues its provocations, then China will take up the battle,” the paper said.
China says tensions with Japan likely to hurt trade | Reuters
Posted by Matt
on September 14, 2012
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China warned Japan on Thursday that trade could be hurt by the flare-up in tension over a group of disputed islands that is fraying ties between Asia’s two biggest economies.
The latest warnings from China brought a call for restraint from Japan, which on Tuesday announced it had bought the disputed islands in the East China Sea from a private Japanese owner, an act Beijing called a violation of its sovereignty.
“With Japan’s so-called purchase of the islands, it will be hard to avoid negative consequences for Sino-Japanese economic and trade ties,” Chinese Vice Minister of Commerce Jiang Zengwei told a news briefing.
China says tensions with Japan likely to hurt trade | Reuters
Stephen Roach: Disastrous Trade War With China Looms
Posted by Matt
on August 24, 2012
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“This combination of mounting economic tensions and leadership transitions heightens the risks of a destabilizing shift in the relationship that has a nontrivial chance of sparking a trade war,” says Roach. “In any war, there is always the saga of the itchy trigger and the first shot.
“With America still licking its wounds several years after the Great Crisis, there is no shortage of itchy fingers in Washington.”
Roach says the following scenario is all too likely: Following his January 2013 presidential inauguration, Mitt Romney issues an executive order declaring China guilty of manipulating its currency.
Trading with the dragon | Prestowitz